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PrivatisationAlternatives / ReformsPublic-Public PartnershipsFinancing Public Water
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Jan 31 2010
Supplied or written by Andreas Lako and Nila Ardhianie

In running the water service business, it is obvious that the private operators are more profit-oriented rather than actually improve their performance. It can be seen how they create an overpriced tariff to gain as high income as possible. This overpriced tariff caused the water utility suffers a shortfall, and more citizens are not able to afford piped-water. In addition, for financing operating activities, investment and financing, the private operator directors chose refinancing scheme by selling bonds or to be indebted to creditors. This practice drives the private operator to unethically claim that the bonds are used for improving the service, while they are actually for paying other long term debts.

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